Money

Borrowing

Home loans

Opinion

The 5% home deposit risk no one is talking about

Nicole Pedersen-McKinnon Money contributor October 4, 2025 — 5.05am

Wednesday last week marked the start of a charge for the expanded, expedited 5 per cent property deposit scheme. But I have an important warning: don’t join the throng unless you’re sure your 95 per cent loan will be approved.

This is the risk no one is talking about with a 5 per cent loan application: get rejected and not just your heart, but your credit score will sink. And so too will your chances of getting approved the next time.

But a couple of key steps make approval more likely. So, what’s the opportunity, and how do you safely take advantage of it?

In a Hail Mary for the housing market, roughly six weeks ago the gove

See Full Page